But from the other side of the world, Mr Abbott himself came under fire from Foreign Minister Kevin Rudd, who said his "head in the sand" approach to climate change makes him "almost unique" in the Western world.

"I haven't visited another country in my period as Foreign Minister where I've discovered the alternative leader, or prime minister, or president of a country with a position like Mr Abbott, which effectively denies that climate change exists and which effectively refuses to consider actions to put a price on carbon," Mr Rudd said from Paris.

"If there's one country which will cop it first in terms of the long-term effects of climate change, it is the dry continent of Australia."

But Mr Abbott says there is "no way" many Australian industries can afford to cut down on carbon emissions.

"Steel making, like cement making, like aluminium making, like motor manufacturing is just inherently emissions intensive," he said.

"If we have a carbon tax in this country we won't have less emissions, we'll just have less manufacturing."

Treasurer Wayne Swan has rejected concerns the carbon tax will devastate towns that depend on industries like steel.

"I don't believe pricing carbon will necessarily do that to any of our industries, because we are determined to ensure that trade-exposed industries that are energy-intensive receive the essential support and protection," he said.

The Government has pledged to "generously compensate" industry when the tax is introduced.

It has released figures claiming that under a $20-per-tonne carbon tax in the steel industry the price of steel would rise only $2.60 per tonne of steel - one third of 1 per cent.